While healthcare costs in the US are continuing to rise, many are looking for ways to help save money or to be prepared if a medical issue occurs. And while healthcare costs are on the rise, the cost of prescription drugs is following suit. According to U.S. News & World Report, “in the last year, drug prices for many prescription drugs have increased significantly.”1
One way you might be able to gain some extra protection is by purchasing supplemental health insurance to, as its name suggests, help supplement your existing health insurance policy. There are many different types of supplemental insurance, including cancer, critical illness, hospital indemnity, and accidental death and dismemberment insurance. (The type of policy and what each policy covers vary widely, so if you think purchasing a policy is right for you, make sure you read it carefully and understand its benefits and limitations thoroughly.)
Covering the cost of prescription drugs is typically not something that supplemental health insurance covers directly. However, depending on the type of supplemental health insurance you buy, you may be able to use the benefits of that policy to help pay for your prescription drugs.
If you are diagnosed with a covered illness or accident and have a policy that offers a cash payout benefit, you can use that money to pay for a wide range of expenses you may incur, including the cost of prescription drugs. According to Insurance Survival Guide, “with a supplemental policy like critical illness or fixed indemnity insurance … the money goes directly to you. This gives you the flexibility not only to cover your outstanding medical expenses but also to maintain overall financial stability when an emergency strikes.”2 Insurance Survival Guide lists several ways you could use the money from such a payout, like travel and lodging; covering lost wages; paying bills; and for copayments, coinsurance, and deductibles. So if you end up facing a lot of prescription drug costs, feel free to use your payout to help pay for those.
Whether supplemental health insurance is right for you depends on your specific circumstances. As The Balance tells us, you should consider your health risk factors, your savings, and how much insurance you can afford when looking into purchasing supplemental health insurance.3
If you have any questions about a supplemental health insurance policy and what its benefits and limitations are, please contact a licensed insurance agent.
- U.S. News & World Report, Why Are Prescription Drug Prices Rising?, 2019
- Insurance Survival Guide, 4 Ways to Use Your Supplemental Insurance Payout, 2019
- The Balance, The Basics of a Supplemental Health Insurance Plan, 2019